Core Viewpoint - The real estate market in May shows signs of weak recovery, with a stabilization in new home sales and project absorption rates, maintaining a high level of activity [2][22]. Group 1: Market Performance - The average opening absorption rate for new homes in 30 key cities in May was 39%, an increase of 1 percentage point month-on-month and 12 percentage points year-on-year, remaining consistent with the peak levels of 2023 [4][22]. - Cities like Xiamen, Chengdu, Changsha, and Chongqing reported absorption rates exceeding 60%, primarily driven by popular projects entering the market [4][22]. - The market is categorized into three types: hot cities like Shanghai and Shenzhen maintaining steady absorption rates; cities like Zhengzhou and Suzhou experiencing a decline but showing year-on-year stability; and weaker second and third-tier cities like Kunming and Qingdao with absorption rates below 20% [4][22]. Group 2: New Project Performance - New regulations and high-efficiency housing projects have significantly boosted sales compared to traditional projects, with "good houses" leading the market [8][22]. - In Guangzhou, new regulatory projects accounted for 50% of the total supply and 70% of the total subscriptions in May, indicating strong market preference for these products [8][22]. - Chengdu saw a rise in market share for new regulatory projects, with absorption rates consistently above 90% due to the introduction of several new projects [11][22]. Group 3: Government Initiatives - In cities like Zhengzhou, Nanjing, and Xiamen, government-led initiatives such as stock housing purchases and housing vouchers have positively impacted sales in non-core areas [16][22]. - In Zhengzhou, one-third of the top-selling projects in May were driven by housing vouchers, showcasing the effectiveness of government support [16][22]. Group 4: Sales Strategies in Weak Markets - In weaker second-tier cities like Xi'an, Suzhou, and Fuzhou, projects are adopting strategies such as significant discounts and enhanced commission structures to boost sales [19][22]. - For instance, in Xi'an, a project achieved 113 subscriptions through channel empowerment and competitive pricing [19][22]. Group 5: Future Outlook - The market is expected to continue its weak recovery trend in June, with an increase in marketing efforts and the introduction of suitable projects likely to sustain sales momentum [22][23]. - Core cities like Shanghai, Shenzhen, and Hangzhou face supply constraints, which may limit transaction volumes, while cities like Zhengzhou and Tianjin show signs of stabilization [22][23].